Modi offers foreign investment inducement

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Investors have found Indian stocks more attractive after Narendra Modi's election victoryKevin Frayer/Getty Images

Michael Edison HaydenDelhi

Last updated at 12:01AM, July 11 2014

Narendra Modi’s new government has given a green light for foreign investors to delve further into the country’s industries as a means of stimulating growth in the country’s sputtering economy in the Indian prime minister’s first budget.

Arun Jaitley, the finance minister, said that he would raise the cap on foreign investment in the defence and insurance sectors to 49 per cent from 26 per cent, a figure that would still bar non-residents from taking full ownership in projects that supply India.

The opening of India’s defence industry presents an intriguing opportunity for many investors. Of the world’s top ten